Government measures to freeze the assets of people suspected of terrorist
involvement have been overturned by the Supreme Court.

Today's ruling was given by a panel of seven Supreme Court Justices, led by Lord Phillips, who sit in the highest court in the landPhoto: PA

9:56AM GMT 27 Jan 2010

The court allowed a challenge by five men who have had all their assets frozen under an order brought in by Gordon Brown when he was Chancellor without a vote in Parliament.

A High Court judge outlawed the Treasury's powers as ''unfair'' and a breach of fundamental rights.

But that was later overruled by the Court of Appeal.

Today's ruling was given by a panel of seven Supreme Court Justices, led by Lord Phillips, who sit in the highest court in the land.

The justices said that the issue in the appeals was whether parliament intended to give the Treasury power to make orders that ''interfere so profoundly with individuals fundamental rights without parliamentary scrutiny''.

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The court held that parliament ''did not so intend'' and in making the orders the Treasury exceeded its powers.

The Supreme Court justices said that if the Government considered "far-reaching measures" were necessary to combat terrorism, "it must first obtain approval for them from Parliament".

Lord Hope said: "Even in the face of the threat of international terrorism, the safety of the people is not the supreme law. We must be just as careful to guard against unrestrained encroachments on personal liberty."

Lord Phillips, president of the court, said: "Nobody should conclude that the result of these appeals constitutes judicial interference with the will of Parliament.

"On the contrary, it upholds the supremacy of Parliament in deciding whether or not measures should be imposed that affect the fundamental rights of those in this country."

A Treasury spokesman said: "The Government is committed to maintaining an effective, proportionate and fair terrorist asset freezing regime that meets our UN obligations, protects national security by disrupting flows of terrorist finance, and safeguards human rights.

"It's important to be clear that this ruling does not challenge the UK's obligations under the UN Charter to freeze the assets of suspected terrorists, which we will continue to meet.

"We will introduce fast-track legislation to ensure there is no disruption to our terrorist asset freezing powers."